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Household debt

Yesterday

NAB said most home owners preferred to maintain current repayments, especially as rates go down, allowing them to pay off loans more quickly

Big banks won’t automatically lower repayments after rate cut

NAB, CBA and ANZ require customers to “opt in” to get a reduction in monthly repayments, as lower interest rates were applied on Friday.

January

Some Sydney private schools will be charging more than $50,000 a year.

Private schools raise fees at three times rate of inflation

For a decade or more, private schools have increased their fees by far more than the CPI. This year is no different, and schools have a range of explanations.

The generational transfer of wealth in Australia is underway, but younger generations are struggling under the burden of high debts.

7 revealing charts about wealth in Australia

The generational transfer of wealth in Australia is underway, but younger generations are struggling under the burden of high debts.

December 2024

Bruce Chapman says HECS debt should not affect graduates’ ability to buy a house.

HECS architect wants student debt ignored when assessing home loans

Bruce Chapman, who created the income-contingent loan system for students, has hit out at the political fiddling the system has faced.

November 2024

Victoria now has the highest rate of home-loan arrears across all Australian states, taking over from Western Australia.

Victorian mortgage arrears top other states

Fresh data from ratings agency S&P shows Victoria has the highest rate of home-loan arrears of any Australian states, overtaking Western Australia.

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These three scenarios show how HECS debt hits your borrowing capacity

Instead of paying his student loan down faster with extra repayments, this 26-year-old chose to divert his savings to build a house deposit. It paid off.

The Greens have upped the ante on Labor, promising to cancel all student debt.

Greens plan to cancel student debt unfair to poor, says HECS architect

In what looks like an act of one-upmanship, the Greens will promise to cancel all student debt, not just 20 per cent like Labor. Experts say the idea stinks.

Labor’s student debt reduction plan benefits male students more than females.

$16b uni student debt fix helps men more than women

Those paying tertiary fees will have to wait until at least 2027 for the overhaul, as analysis shows it will assist male graduates erase their liability sooner.

October 2024

There is good debt, and bad debt.

How to manage good, bad and dreadful debt

Dreadful debt destroys wealth, and credit cards are top of the list.

September 2024

Penny Locaso says undertaking a PhD in psychology will cost her nothing while an honours year comes with a $30,000 price tag.

$30k for honours degree makes switching careers an expensive choice

Older generations are being lumbered with more student debt and for longer as students try to negotiate an irrational and unfair system.

July 2024

Cash Converters said retail store revenue increased by 11 per cent in 2024 after 600,000 transactions took place in its pawn shops.

Booming Cash Converters revenues point to squeeze on the poor

The ASX-listed pawnbroker told investors the increase was partly tied to “mainstream finance” being “more difficult to access” for many of its customers.

North Richmond in Sydney’s west. The volume of refinancing has begun to slow, likely pushing delinquency rates lower.

Mortgage cliff turns into ‘a wave’ that is already subsiding

The tailing off of refinancing is fuelling a rosier outlook for housing delinquencies as borrowers come to terms with higher-for-longer interest rates.

Attorney-General Mark Dreyfus will announce the overhaul on Monday.

Labor reveals personal bankruptcy overhaul

The threshold for involuntary bankruptcy will rise to $20,000 and Attorney-General Mark Dreyfus will also launch consultations for a mini-bankruptcy regime.

To cut the cost of your “wants”, you’ll need to come up with some sacrifices.

How the 50/30/20 budgeting hack can unlock your finances

This straightforward strategy suggests dividing your income into three buckets: needs, wants and financial goals.

May 2024

ASIC chairman Joe Longo: “It’s time for meaningful improvement.”

Lenders creating ‘unnecessary barriers’ for struggling customers: ASIC

With living costs high, ASIC chairman Joe Longo has issued a stern report on bank hardship policies. ABA chief Anna Bligh says processes are being improved.

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Rising interest rates and power prices mean Adam and Erin Foster’s dream of buying their first home keeps “slipping through the fingers”.

$300 off every household’s power bill in cost-of-living cash splash

In addition to a tax cut from July 1, every household will receive an electricity bill discount as part of a $7.8 billion cost-of-living package.

TGE boss Christine Holgate has navigated Team Global Express’ recovery, backed by Allegro Funds.

CommBank to refi PE-backed logistics giant; Daimler, IFM tip into debt

The new loan comes four years after Allegro Funds, led by deal maker Adrian Loader, paid less than $10 million to acquire Team Global Express.

April 2024

The dominance of variable rate mortgages and high levels of household debt means Australian consumers are highly sensitive to interest rates, the IMF has found.

Australian households are world-leaders in interest rate pain: IMF

Variable-rate mortgages and high household debt make Australian consumers highly sensitive to interest rates, the IMF says, but house prices are still rising.

The major banks have been lifting interest rates and reducing interest free days on popular credit cards.

CBA joins banks quietly cutting interest-free days on credit cards

The big banks have all been slowly lifting their rates, while Commonwealth and Westpac have also increased annual fees.

February 2024

Australian mortgage arrears rose during the fourth quarter and this will continue amid high-interest rates and rising unemployment, said S&P Global Ratings.

WA borrowers struggling the most with home loan repayments: S&P

S&P Global Ratings says mortgagees in the West are 20pc more likely to be behind on repayments.

Original URL: https://www.afr.com/topic/household-debt-hor